03/09/2024 by Richard
Bloomberg reports that ExxonMobil is looking at divesting about a billion dollars in conventional oil and gas assets located in the Permian Basin of West Texas and New Mexico.
According to unnamed sources cited by Bloomberg, some of the assets will be wells in the Permian’s central basin where production is stable but not especially high.
ExxonMobil is currently in the process of focusing its efforts on developing shale oil and gas projects. For example, its recent acquisition of Pioneer Natural Resources effectively doubled its presence in the Permian Basin, reinforcing its leading role in this prolific region for oil and gas production.
Following the completion of the acquisition, ExxonMobil, the maker of the Mobil DTE hydraulic oil, gained access to more than 1.4 million net acres in the Permian formation’s Midland and Delaware basins.
The company expects production in the combined assets to increase to 1.3 million barrels per day (bpd). Moreover, the acquisition seems to have potential strategic value in the long term, with production expected to reach 2 million bpd by 2027.
In response to a request from Bloomberg, ExxonMobil said it was:
“…exploring market interest for select conventional assets in West Texas and South East New Mexico. This decision is consistent with our strategy to continually evaluate our portfolio.”
ExxonMobil expects to reach an overall production level of 4.3 million bpd this year, the highest in a decade, and the assets it acquired with Pioneer are expected to play a large role in meeting this goal.
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